China to tighten restrictions on capacity expansion

China is to tighten restrictions on increases in new capacity in 2012 to manage surplus capacity, according to Liu Ming, an official of the National Development Reform Commission.

Speaking on a cement industrial meeting, Liu said the main task at present is still to rein in the fast increase of cement production capacity since China would face overcapacity at national level during the period of 2011-2015.

Liu said the government will encourage mergers and acquisitions in the sector and increase financial support, to that end. 

China's cement output increased 11 pe rcent to 2.09bnt in 2011 with annual production capacity at 2.9bnt. Liu added that China would roughly complete its task of phasing out outdated cement production capacity by the end of 2012. (Source: Xinhua News Agency)